Cardano (ADA) slipped below its prior range support toward $0.360 on the 4-hour chart after multiple failed attempts to clear resistance between $0.3855 and $0.3885, a breakdown that coincided with declining open interest now near $646 million and months of persistent spot outflows that only recently showed a small net inflow of approximately $287,800.
What Happened: Sellers Regain Control
The token broke beneath key moving averages and the Supertrend indicator, leaving buyers with limited room for recovery unless they can reclaim higher levels.
The first resistance sits at $0.3705, aligning with the 0.382 Fibonacci retracement.
A more significant pivot lies at $0.3833, where price action previously found support.
Moving average clusters between $0.3855 and $0.3885 present a ceiling that bulls must clear. A push through $0.3918 would be required to reach the range top, with $0.4145 and $0.4377 as higher targets.
If $0.3600 fails to hold, support levels at $0.3546 and $0.3289 come into focus. The latter marks the prior swing low.
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Why It Matters: Demand Signals Weaken
Open interest climbed during ADA's late Q4 rally and spiked during the breakout phase. Those surges reset quickly as traders reduced exposure after volatility.
Spot flows remained negative from late March through early January.
Several sharp sell-side bursts coincided with weaker price phases.
The recent small net inflow has not been enough to challenge resistance zones. ADA needs sustained buying pressure to shift the bearish structure that currently defines its chart.
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